Most people are likely to be saving for retirement in their fifties, while those under 40 focus on getting a home and raising a family.
The study showed that adults in their fifties are busy saving for their golden years and having some free money to spend later in life.
1
Savers are unlikely to put money away for retirement until they are 50Credit: Alamy
As a separate research claim, you need a pension pot of £ 587,116 per person, or £ 355,856 if the couple of you, for a comfortable retirement – which means some people could stay short if they don’t save sooner.
Meanwhile, “comfortable” adults in their sixties are saving £ 237 a month on unnecessary “big ticket” items like vacations and new cars.
Those under 40 save for “smarter” purchases by saving close to £ 300 a month on home deposits, new furniture and starting a family.
However, almost one in six adults is having problems with rescue after the effects of the coronavirus pandemic.
Top Tips for Boosting Your Retirement Pot
Not sure where to start? Here are some tips from financial services provider Aviva on how to get started.
- Understand where to start: Before thinking about your plans for tomorrow, you need to understand where you are today. Find out about your current retirement savings and research when you will be eligible for the state pension and how much support you will receive.
- Use your company pension: All employers are legally obliged to provide a company pension. If you save, your employer usually has to make a contribution too.
- Use the online planning tools: Financial services providers Aviva and Royal London have tools that can give you an idea of what your retirement income will be based on how much you’re saving.
- Find out if your workplace offers advice: Many employers offer meetings with financial advisors to help you plan your future retirement.
And 35% admit that their savings fund is now mainly used as a replacement for lost income rather than saving for something special.
It also found that during these tough economic times, adults in their thirties are most likely to cut money if they lose their jobs.
While those in their forties are the ones who are setting aside cash for unexpected income to reduce.
The study also found that, surprisingly, adults in their twenties are most likely to have an attitude about their finances that believes the younger generations aren’t saving.
Young adults in their twenties are putting money aside for a wedding and saving for a baby in their thirties.
Those in the younger age groups are also more likely to have something on their minds when saving, with those in their twenties shedding an average of pounds 308 a month and those in their thirties shedding pounds 295.
Only four in ten of those over 60 have something to save regularly, and it is less likely that more than one savings pot will be on the go at the same time.
Adults in their thirties are more likely to save up for things that will help them prepare for the future – like furniture, a garden room, or a move – though they also crave the latest fashion items like clothing and shoes.
But the youngest respondents – those in their twenties – are device-powered and hope to spend their hard-earned money on things like a new TV or smartphone if they don’t save up for weddings and a home of their own.
Overall, OnePoll researchers found that Britons found it hardest to save after household incomes fell after having a child (23%) and had unforeseen problems with the house (20%).
Other reasons why savings plans have been postponed over time include addiction to shopping (9%), taking a job with a lower salary (12%), and hiring a partner who has stopped working (7%).
Maitham Mohsin, director of savings at the Skipton Building Society, said: “Fortunately, some adults can save more money than ever right now by continuing to work but spending less due to the reduced commuting and entertainment available.
“However, there are many who worry about their financial stability and put literally every penny into a savings account just in case.
“At Skipton, we know that if your money is in a good place, so are you. So it’s comforting to see through our study that despite the Covid-19 pandemic, most UK adults are sensible about their savings.
“Our research shows that the average household is able to put just under £ 300 a month into their savings pot. That is a significant amount, especially given the pressures some adults are currently under.”
NO JAB, NO JOB
Employers could impose “no jab, no job” contracts on new employees
CAR IN
15 Things You Should Know About Vacation Including What Happens When The Program Ends
PENSION PERKS
State pension increase: how much will you get in April
PIG OUT
Marks and Spencer’s 2021 Easter series features a HUGE chocolate Percy pig
EXTINGUISHED
Working mother for universal loans in thousands of pounds of debt due to rules
FINAL DISC
Full list of 22 Prezzo stores closing – see if your location is affected
How retirement fees can cut your savings pot by hundreds of thousands – and how to avoid them.
Women are £ 106,000 worse off than men in retirement due to low paying jobs and part time work.
Here’s how you can increase your state pension by up to £ 250 per year.
Martin Lewis declares the best savings accounts as interest rates remain at rock bottom
